Landlords insurance provide cover for your investment property. This type of insurance covers landlords from any tenant related loss such as wilful damage, loss of rent due to braking of lease or even accidental damages such as damage to curtains and drapes, stains on carpets cause by liquid spills etc.
While landlords would have a valid claim against the bond that is held, in most cases this is by itself insufficient to cover damages to your investment property caused by wilful or accidental actions of tenants.
In selecting an appropriate Landlords Insurance cover, it would be beneficial to discuss with your Insurer on what is covered and what is not. It would be too late to read the fine print after a significant damage is sustained on the property. While the list below is not exhaustive, some of the important points that you will need to consider are:
Injury caused to tenant at the property. Eg Faulty steps, electrical and gas faults
Damage or theft
Caused by the tenant which is malicious, wilful or even accidental.
Loss of Rent
Non-payment of rent by the tenant and any tribunal/court costs of eviction.
Damages to fixtures and fittings owned by the landlord. Eg air-conditioners, cook-tops, cabinetry, fencing gates etc
Household goods, furniture, blinds, carpets etc owner by the landlord
In general, most insurance companies provide excellent landlords cover, however, you should be aware that the costs of premiums and indeed the coverage itself may differ depending whether your property was managed by a licenced Property Manager or was self-managed.
The benefits of taking out a suitable insurance cover cannot be over-stated given the possibility of the huge costs associated with a rental property is something was to go wrong. You must ensure that the policy covers you for your particular circumstances and your insurer or broker would be able to provide you with further information.
DISCLAIMER: The information in this article is of a general nature only and is not personal financial or investment advice. It does not take into account your particular objectives and circumstances. You should not act on any information in this article without taking advice from a suitably qualified Insurer or broker.
Realty8 is a premium service Property Management Agency servicing suburbs in Brisbane and the Redlands. Call us today on 07-3343 1591 or 0478 677 044 to find out how we could help you look after your investment property.
Royden is the principal and founder of Realty8. He is a Fellow (FCPA) of the Australian Association of CPA’s and hold a Business degree from the Queensland University of Technology. Royden is an avid reader and is a passionate hobby photographer and digital artist. However, his real passion is Real Estate and Property Management in particular.